The outbreak of coronavirus has pressed pause on the electric shuttle vehicles market. The electric vehicle market has stalled. As too has the battery raw materials market. Both must battle with operational disruption and very challenging economic times.
2019 Was the Best Economic Year for the Electric Shuttle Vehicles Market
Last year, in 2019, the electric shuttle vehicles market was booming. However, the COVID-19 pandemic has painted a completely different picture. Clean energy analysts also face the prospect of reducing their expectations with regards to climate change. The electric vehicle market champions renewable energy sources, but the forecast for the year is now under disruption.
Consumers Aren’t Buying Electric Vehicles Right Now.
It is clear to see that there is a looming global recession, which means that electric shuttle vehicles will take the brunt of this. With shoppers more adverse to the risk of new technologies, many consumers may even postpone car purchases as a whole. Consumers were beginning to see the benefits of electric cars, and now buying has been put on hold due to lockdown restrictions. With leisure activities on hold, there is a slump in demand for golf carts and other electric shuttle vehicles. The coronavirus outbreak means that lights are turned off at country clubs, sports centres and other popular leisure locations. Despite great efforts, it may be that expectations for the electric shuttle vehicle market need to be lowered for the year 2020.
New Automakers Entering the Electric Vehicle Market Have Launches Prematurely
It is essential to see the positives of the situation, however bleak they may be right now. Across the globe, when lockdown measures are lifted there may be a bounceback in demand. The electric vehicle market is still very unclear, and it’s going to take time to return to normal. You might say that lines are even more blurred as automakers enter the electronic vehicle market as a new addition, announcing models that won’t be available this year. Ford announced their new electric vehicle model, but it is highly likely that consumers won’t purchase until test drives are readily available
It is Important to Remember That COVID-19 is an Isolated and Anomalous Event
It is very easy to get drawn into the facts and figures of the slump in the electronic shuttle market. However, it is important to acknowledge that COVID-19 is an anomalous event. Although it may have stalled the electric transport industry, it hasn’t put a stop to it for the future. Coronavirus may be at the forefront of people’s minds right now, but that doesn’t mean that the battles against climate change had been cancelled.
Long Term Climate Change Goals Have Not Been Cancelled
Electric shuttle vehicle manufacturers haven’t changed their goals on operating carbon-neutral transport. It is also highly unlikely that governments will cancel their policy that aimed to phase out internal combustion engine vehicles. Although it is very easy to get swept up in the bad news of the oil price crash, the purchase price, charging infrastructure and available models currently have a much greater impact on sales.
All Levels of The Supply Chain Are Affected, Including Battery Raw Materials
It is inevitable that coronavirus is affecting all levels of the supply chain with regards to electronic shuttle vehicles. The battery raw materials market also faces a considerable challenge. Lithium is a big component of electric car batteries, so the lithium market is definitely taking a hit too. The electronic shuttle market must not only deal with the economic impact but also the other disruption surrounding the virus.
Keep an Open Mind to New and Emerging Opportunities
It may seem like an unprecedented and challenging time for electronic vehicle sectors and the battery market, but it is important to keep an open mind about opportunities. Inevitably there is going to be a significant drop in demand this year. Electric shuttle vehicles aren’t going to be selling at their peak but there is room for growth in other ways. Suspensions on manufacturing or due to the virus containment rather than a response to prices or supply. A positive effect of coronavirus could be, That there is a reassessment of globalised electric vehicle supply chains. At the moment the industry relies heavily on China, not for all manufacturing but for a lot of it. There could be a shift towards developing more localised supply chains, which would reduce the risk of disruptions and ups and downs. This would not only reduce carbon footprint significantly, but it would also create shorter lead times. If another pandemic were to hit, the market would be less affected as more electric vehicles would be produced locally.
Making the Best Out of a Bad Situation
These challenging times are clearly a huge test for governments’ commitments. Coronavirus has played havoc with their plans to reduce carbon emissions in 2020, but there are opportunities to make the best out of the situation. Compared to the past, we have much cheaper renewable technologies and there has been major progress in electric vehicles. There is also a very supportive financial community with regards to clean energy, so let’s hope they stand strong with us when the world returns to normal.